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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: (No name provided) who wrote (69933)	4/13/2001 4:48:25 PM
From: UFGator93	Respond to of 122087

I did a bit more digging into the differences in the pro forma with respect to HOMS. Turns out they aren't including a non-cash payment of $12 million a quarter to AOL. That's 10 cents a quarter against EPS. If that deal is for all of 2001, that alone brings the 44 cent pro forma estimate down to 4 cents (and the P/E from 64+ to 700+). That's just that one item. I can see why companies are so fond of using these types of numbers.

To: (No name provided) who wrote (69933)	4/13/2001 5:39:07 PM
From: ZenWarrior	Respond to of 122087

Y: IMO, some Pro Forma #'s s/b eliminated. On the other hand, why should one time charges (positive or negative) be included, thus giving a different picture than what their operations were? I think the rules are mostly fair (maybe not w/ options)... it's just that companies sometimes... well, often... screw w/ the #'s. I disagree w/ you on Amortization and interest... how can this not be included in Pro forma #'s, unless they twist the rules, etc.? I believe that's against GAAP, though I could be wrong. They say 10% of the "earnings" out there are actually false earnings. But what do I care? Wall Street follows the headlines, not accounting particulars. Sad but true. - Zen